WORK SESSION AGENDA REQUEST

Sponsor:

Board of Supervisors Meeting Date: 

Raymond E.  Graham , Cedar Run District

October 20, 2003

Staff Lead:

Department: 

Bryan Tippie , Director

Budget Office

Topic: 

A Resolution to Amend the Debt Referendum Policy for Fauquier County

Topic Description:

Effective July 1, 2002, the Board of  Supervisors adopted a resolution which established a debt referendum policy for Fauquier County. Basically, the policy states that all new construction projects or acquisitions that exceed $10,000,000 require a voter referendum. A referendum is required regardless of how the project is to be funded.  

The policy does not specifically address spending funds on a project prior to a required referendum.  

The School Division will be seeking Board of Supervisors' approval to expend School Construction Reserve funding for conceptual and schematic secondary facility designs and other related expenses in preparation for a bond referendum. Expenditures are proposed to be supported from the existing School Construction Reserve and additional funding for the Reserve from FY 2003 year end balance.  

If the Board of Supervisors authorizes expenditures in advance of a referendum, assuming a successful 2004 referendum, the School Division expects to complete the project in August 2007 (FY 2008). If the Board of Supervisors requires a referendum be held first, then the project would be expected to be completed in August 2008 (FY 2009). The attached School Division document provides the estimated timeline for both options.  

 In response to this effort, a draft modification to the current Referendum Policy has been prepared for the Board of Supervisors' consideration.  The modification would specifically allow for reasonable related expenditures of available cash funds prior to a referendum. These expenditures are those considered necessary to ensure that Fauquier County citizens have sufficient information to make an informed decision on a referendum issue. A proposed Amended Referendum Policy is attached.

Requested Action of the Board of Supervisors: 

Convene a work session to allow the Board of Supervisors to consider the merits of the School Divisionís request in regard to the intent of the referendum resolution.  

At the next Board of Supervisors meeting, consider a modified Referendum Policy specifically addressing spending on a project prior to its referendum.

Financial Impacts Analysis:

Any funding expended prior to referendum would be supported by existing cash funding. In the specific case of the School Division, any funding/expenditure other than from its operating budget would be in accordance with existing Finance Committee policy.

Identify any other Departments, Organizations or Individuals that would be affected by this request:

School Division

Finance Department

General Services